International Trade and Trade Policy

Anne Celia Disdier, Lionel Fontagné, Pamina Koenig, Sandra Poncet, Ariel Reshef, Thierry Verdier

This research theme investigates and discusses globalization and international trade policy issues. Research projects undertaken by members of the group are organized as follows.

A) Trade policy

The research focuses on modelling and measuring the effects of tariff and non-tariff measures on trade patterns and socio-economic well-being. The following research projects are related to this area:

  • Impact of health, phytosanitary and technical regulations on commercial trade and welfare (Anne-Celia Disdier) and trade impact of regulatory measures in services (Lionel Fontagné).
  • Construction of simulation tools as well as databases of applied tariffs and non-tariff barriers (in collaboration with CEPII). Estimates of trade impact of various regional trade agreements, and economic consequences of the trade war between the US and China (Lionel Fontagné).
  • Development and public release of a database of trade elasticities computed at the product level for the universe of exporters and importers (Lionel Fontagné).
  • Regulatory cooperation into trade agreements and quantification of the benefits of these cooperative mechanisms (Anne-Celia Disdier).
  • Exploiting firm-level or city-level data, some work specifically focus on China’s international opening process, in particular the analysis of different trade and investment policies implemented in China to develop trade flows or foreign direct investment (Sandra Poncet).

B) Micro dynamics of Trade and Firms

The micro-economic dimension of adjustments to trade policy shifts and the impact of internationalization and the analysis of exporting firms’ strategies and performance has received much attention over the last twenty years. The group is providing a number of projects along this line of research.

  • Response of heterogeneous exporters to Non-Tariff Measures such as sanitary measures or technical standards, making intensive use of confidential data on French exporters (Lionel Fontagné)
  • The analysis of firms’ performance and determinants of productivity changes and quality positioning in the global economy (Lionel Fontagné)
  • the role of multinationals in technology transfer and offshoring, and the effects of trade and technology adoption on firm-level productivity dynamics (Ariell Reshef)
  • The hierarchical and organizational structure of global firms (Thierry Verdier)

C) Structural Issues and International Trade

Long-term issues are indeed crucial for an accurate evaluation of public policies. In this respect some studies connect trade policies and globalization to structural issues such as the environment, health and social inequality, culture, and the development of civil society.

  • Development and simulation of global macroeconomic scenarii for the world economy based on demography, energy efficiency, environmental regulations and productivity catch up (Lionel Fontagné).
  • Effects of trade and technological change on labor markets, and in particular the implications for job polarization, wage inequality, and the evolution of labor income shares (Ariell Reshef).
  • Impact of globalization on nutrition transition and health, with a focus on emerging countries (Anne-Celia Disdier).
  • Impact of international trade on cultural diversity (Thierry Verdier)
  • Civil society and international trade, private regulation and social responsibility of global firms (Pamina Koenig, Sandra Poncet, Thierry Verdier)